PROFESSIONAL SERVICES ADVISORY COMMITTEE
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1 PROFESSIONAL SERVICES ADVISORY COMMITTEE There was a meeting of the Indian River County (IRC) Professional Services Advisory Committee (PSAC) on Tuesday, April 19, 2007 at 12:15 p.m. in the First Floor Conference Room A of the County Administration Building, th Street, Vero Beach, Florida. Present were Chairman Rodney Paradise, Real Estate Broker Appointee; Vice Chairman Warren Dill, Law Appointee; Peter Robinson, Development Appointee; Robert Gaskill, Architect Appointee; Stephen Moler, Engineer Appointee; Todd Smith, Engineer Appointee; and Alan Schommer, General Contractor Appointee. Absent were Robert Brackett, Finance and Business Appointee; John Blum, Civil Engineer Appointee; George Kulczycki, Forester, Biologist, Botanist, Horticulturalist, or Arborist Appointee; and Ryan Morrell, Environmental Issues Appointee (all excused). Also present were IRC staff: Stan Boling, Planning Director; Bob Keating, Community Development Director; Will Collins, County Attorney, Bill DeBraal, Assistant County Attorney and Misty L. Pursel, Interim Staff Assistant IV. Others present: Joseph Paladin, Growth Awareness Committee; Jim Runte, Motor Home Superstore; Harry Dunnington, Vero Beach Chrysler; E. Fred Augenstein, The Ad Agency; Brian McNulty, Gator Chrysler; Bill Garrett, Indian River Federal Credit Union; Danette Dieffenbach, Service Chevrolet; Neal Meadows, Velde Ford, Inc.; and Jim Pagano, Service Chevrolet. Call To Order Chairman Paradise welcomed everyone and all stood for the Pledge of Allegiance. In observation of flags at half mast, a moment of silence followed for the unfortunate souls at Virginia Polytechnic Institute and State University in Blacksburg, Virginia. Chairman Paradise called the meeting to order at 12:17 p.m. Approval of Minutes of the January 30, 2007 Meeting ON MOTION BY Mr. Dill, SECONDED BY Mr. Gaskill, the members voted unanimously (7-0) to approve the January 30, 2007 minutes, as submitted. PSAC/Approved 1 April 19, 2007
2 Old Business None. New Business A. Amendments to Chapter 972 of the Code of Indian River County to Limit Temporary Vehicle Sales Locations (countyinitiated) Mr. Peter Robinson submitted Form 8B, Memorandum of Voting Conflict for County, Municipal, and Other Local Public Officers, to excuse himself from voting on this item. A copy of this form is on file in the Commission Office and identifies Mr. Robinson as a real estate transaction broker on the existing contract for a piece of property that would be affected by the proposed vehicle sales ordinance. Mr. Stan Boling, IRC Planning Director, summarized the background of the County regulations for temporary uses in its ordinances. He mentioned two popular locations for the offsite sales on commercially zoned properties used for limited temporary vehicle sales locations: Indian River Mall and the old Wal-Mart Building in Sebastian. Mr. Boling stated the proposal brought forward was to return to the County Chapter 972 regulations not allowing offsite sales from car dealership areas, as it was 18 to 20 years ago. He confirmed temporary facilities like tents and a barbecue on car lots would still require temporary use permits as they were required presently. Mr. Boling brought under discussion a couple of sites in the unincorporated area of the County where special events occur where no temporary use permits were issued and the regulations of Chapter 972 did not apply because the site was approved for certain types of special events, i.e., the Indian River Fairgrounds for community use activities, but not commercial sales activities, Riverside Park, and a green space at Pointe West. Mr. Boling introduced Mr. Bill DeBraal, IRC Assistant County Attorney. Attorney DeBraal indicated the major changes and the highlights to the ordinance were to only apply to the unincorporated sections of Indian River County, and were not applicable to the Cities of Vero Beach, Sebastian, Fellsmere, etc. He advised the other change was under Item C, of the Ordinance, prohibiting the temporary sales except when already on an approved PSAC/Approved 2 April 19, 2007
3 location for permanent sales. He noted this change was needed to be done before it went before the Planning and Zoning Commission. Attorney DeBraal continued another change within the ordinance was the elimination, according to state statute, of the term occupational license, now referred to as a business receipt tax which needed to be obtained before business could be done in the County. Mr. Brian McNulty with Gator Chrysler in Melbourne inquired of the motivation to change the law. Attorney DeBraal referred to the ordinance wherein the purpose was for consumer protection. He stated there had been complaints from some of the temporary vehicle sales that people had difficulty getting warranty work done. Some of the vendors who would participate in the temporary sales would be gone shortly after the sale and consumers could not contact the vendor to have them stand behind their product. Mr. Joseph Paladin, Growth Awareness Committee, raised the issue of decreasing the money coming into the mall, or places like it. He inquired whether Christmas tree and pumpkin sales were included and what the limitations were. Attorney DeBraal responded it would only apply to special vehicles and boats as described in Section 901. Mr. E. Fred Augenstein, the Ad Agency in Sebastian, who was involved with the advertising for Indian River County Auto Dealer Association and a variety of their dealers, and also on behalf of Ursula Gunter with Simon, handed out a packet of information addressing concerns, a copy of which is on file in the Commission Office. Mr. Augenstein opined this amendment was a free enterprise issue and a few bad people should not spoil it for everybody else. He thought the bottom line was what was best for the residents of Indian River County by providing more choices and good transportation. Mr. Alan Schommer voiced his opinion that the County had no business being in the business of regulating who can sell cars in the County and who cannot. He said automobile dealers, boat dealers, and recreational dealers were all governed under State law, and were all bonded agencies. Mr. Schommer pointed out no one had specifically been harmed, there was no case. He believed the County was over reaching and without justification PSAC/Approved 3 April 19, 2007
4 from a standpoint of blight or damages, he saw no reason for the County to regulate who can sell in Indian River County. Chairman Paradise inquired whether any complaints had been received specifically regarding dealers from out of state. Attorney DeBraal responded in the negative. He told the Committee this matter came about from a meeting held with the local car dealerships and Chairman Gary C. Wheeler; wherein the Board of County Commissioners had decided to propose an ordinance amendment prohibiting or limiting the amount of temporary sales of vehicles and boats. Mr. Boling, who attended the initial meeting with Will Collins, County Attorney, and the local car dealerships, advised the local car dealerships were in favor of the amendment. Attorney Collins added it was the local dealers who did not want the out-ofcounty people coming in for special events because the local dealers had invested in permanent facilities, were paying taxes and for improvements. Chairman Paradise was in agreement with Mr. Schommer in regard to trying to control something more than should be controlled. Mr. Dill questioned the number of sales taking place in the County and whether there were records of accidents or safety issues involved with the temporary sales. Attorney DeBraal answered he was not aware of any temporary sales records or records indicative of accidents or safety issues. Comments were made by members of the various car dealerships in attendance. Mr. Dill informed the Committee the only way the County could regulate the temporary sales would be under the police powers for public health, safety and welfare. He felt the County needed to provide statistics to justify a consumer issue needing protection. Mr. Dill remarked upon the issue regarding servicing warranties in which the County, under its police power and business receipt tax, had the opportunity to require background information on the companies applying for licensing. PSAC/Approved 4 April 19, 2007
5 Attorney DeBraal related via research, it was indicated a disparity from incounty to out-of-county was unconstitutional, unless there was a good reason for it. Attorney DeBraal was questioned whether in his research he found any precedence or challenges to the proposed ordinance and responded he did not find any case law either in favor of or not, or any challenges concerning consumer protection. ON MOTION BY Mr. Schommer, SECONDED BY Mr. Smith, the members voted unanimously (6-0) not to approve the amendments to Code of Indian River County to Limit Temporary Vehicle Sales Locations in Chapter 972 as presented. Note: Mr. Robinson abstained from voting as noted previously. B. Amendments to Section Subdivision Security-Warranty Bonds (county-initiated) Attorney Collins provided the background regarding subdivisions being approved noting they had been allowed to plat and begin sales of the lots before the placement of infrastructure under a procedure where they would post security to guarantee the roads, drainage, and utilities being in place within one year of final plat approval. As security for the improvements, the County accepted cash, escrows, letters of credit, or performance bonds. He continued over the years there were a number of problems with performance bonds, and the money was not generally forthcoming without a lawsuit to try to collect. Changes were made because of these difficulties, and the County no longer allowed 100% financing of the subdivision improvements after the final plat was approved. Now at least 75% of the changes were required to be in place before the final plat was approved, and the final 25% could be secured with either cash or a letter of credit. After the new ordinance had been in place for a couple of months, there was a request for the County to reconsider accepting bonds with respect to the warranty work, which covered warranties for paving and drainage for three years, and a one year warranty for utilities. Attorney Collins reviewed the ratings used by the bonding companies and some of the problems such as small companies not always being able to show the financial assets to get a bond issued. He explained bonds were being recommended with an A.M. Best s rating of A+VII instead of the previous A+XI. PSAC/Approved 5 April 19, 2007
6 Mr. Joseph Paladin, Chairman of the Growth Awareness Committee, related the problems that had been encountered with the maintenance bonds and encouraged the PSAC to approve the amendments proposed to Section Other Matters None. Adjournment ON MOTION BY Mr. Moler, SECONDED BY Mr. Blum, the members voted unanimously (7-0) to approve the amendments to Section , Subdivision Security-Warranty Bonds to A+VII as presented. There being no further business, the meeting adjourned at 1:05 p.m. PSAC/Approved 6 April 19, 2007
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